June 27, 2013
Secretary Glen Shor
Executive Office of Administration and Finance
The Honorable Stephen M. Brewer
Senate Committee on Ways and Means
The Honorable Brian S. Dempsey, Chairman
House Committee on Ways and Means
Re: Capital Gains Tax Revenue and FY13 General Appropriation Act Stabilization Fund Transfers
Dear Secretary Shor, Chairman Brewer and Chairman Dempsey:
Pursuant to certification received from the Commissioner of Revenue, tax revenue estimated to have been collected from capital gains during FY2013 (July 1, 2012 through May 31, 2013) was $1.3052 billion. As such tax revenues exceed $1,000,000,000 in fiscal year 2013 by $305.2 million, per Section 5G of Chapter 29 three transfers will be generated:
- A transfer of $305.2 million to the Stabilization Fund;
- A transfer equal to 5% of the capital gains tax revenues transferred to the Stabilization Fund, or $15.260 million, to the State Retiree Benefits Trust Fund;
- An additional transfer equal to 5% of the capital gains taxes transferred to the Stabilization Fund, or $15.260 million, to the Commonwealth's Pension Liability Fund.
In addition, per Chapter 139 of the Acts of 2012 (the FY2013 General Appropriation Act), as amended, I will process transfers from the Stabilization Fund to the General Fund of $550 million and $481,303.50, the latter representing interest earned by the Stabilization Fund In May 2013.
If you have any questions regarding this letter, please contact Howard Merkowitz, Deputy Comptroller at (617) 973-2602.
Martin J. Benison
Emme Schultz, Budget Director
Amy Pitter, Commissioner of Revenue
James MacDonald, First Deputy Treasurer
Howard Merkowitz, Deputy Comptroller
Kazim Ozyurt, Director, Office of Tax Policy Analysis, Department of Revenue
BJ Trivedi, FRAB Director, Office of the Comptroller
Julia Burns, GAB Director, Office of the Comptroller